Porsche CEO Matthias Mueller said that despite costly expansion plans, the carmaker seeks to remain as the world's most profitable car manufacturer and to build on this position. For a long time, Porsche has been the benchmark for profitability in the auto industry. In Porsche’s latest financial results in October, it posted a pre-tax profit margin of 16% for the 12 months ending July 31, 2010.
Mueller said Porsche may be expanding production outside its home market of Germany in countries such as China and the U.S.
The brand will expand with the help of Volkswagen Group. Porsche is in the process of merging with VW. In an interview for Automotive News Europe Executive Edition, Mueller said that VW Group plans to sell between 10 million and 11 million cars a year. He said that production capacities are at 7 million to 8 million.
VW would have to build five to six new plants worldwide to meet required capacity. Mueller predicts that the iconic 911 sports car will still be Porsche's core product and that the new 911 that will enter the market at the end of this year will be "the most successful 911 of all time.”
He said Porsche seeks to sell 30,000 units a year of the new 911 averaged over its life cycle. Last year, 911 sales were about 20,000 as the car hit the end of its life cycle. [via autonews - sub. required]